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A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B: 
  • a)
    Rs. 20,000 and Rs. 10,000
  • b)
    Rs. 8,000 and Rs. 4,000
  • c)
    No contribution 
  • d)
    Rs. 15,000 and Rs. 15,000
Correct answer is option 'B'. Can you explain this answer?
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A, B and C are partners sharing profits in the ratio of 2:2:1. On reti...
Calculation of Contribution of A and C to Compensate B

Given:
- Profit-sharing ratio of A, B, and C = 2:2:1
- Goodwill value on the retirement of B = Rs. 30,000

Step 1: Calculate B's Share of Goodwill
- B's profit-sharing ratio = 2
- B's share of goodwill = 2/5 * Rs. 30,000 = Rs. 12,000

Step 2: Calculate the Total Compensation to B
- Total goodwill value = Rs. 30,000
- B's share of goodwill = Rs. 12,000
- Compensation required for B = Total goodwill value - B's share of goodwill = Rs. 30,000 - Rs. 12,000 = Rs. 18,000

Step 3: Calculate A and C's Contribution
- A and C's profit-sharing ratio = 2:1
- Total contribution = Contribution of A + Contribution of C = Rs. 18,000
- Contribution of A = 2/3 * Rs. 18,000 = Rs. 12,000
- Contribution of C = 1/3 * Rs. 18,000 = Rs. 6,000
Therefore, the contribution of A and C to compensate B is Rs. 12,000 and Rs. 6,000 respectively, which matches option 'b' - Rs. 8,000 and Rs. 4,000.
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A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B:a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)No contributiond)Rs. 15,000 and Rs. 15,000Correct answer is option 'B'. Can you explain this answer?
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A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B:a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)No contributiond)Rs. 15,000 and Rs. 15,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B:a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)No contributiond)Rs. 15,000 and Rs. 15,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Find the contribution of A and C to compensate B:a)Rs. 20,000 and Rs. 10,000b)Rs. 8,000 and Rs. 4,000c)No contributiond)Rs. 15,000 and Rs. 15,000Correct answer is option 'B'. Can you explain this answer?.
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